Global interest in the International Year of Microcredit 2005 continues to grow. Many initiatives are underway to help meet the Year's objectives of promoting awareness of microfinance and building inclusive financial sectors. All of the initiatives undertaken by the Year are designed to encourage innovation and strategic partnerships.
National Committees
An unprecedented global response to the call to build inclusive financial sectors is now underway, with nearly 100 countries - or about half of the countries of the world - pledging their support to the International Year of Microcredit.
Many countries are making a formal commitment to the Year through the establishment of National Committees. National Committees or Focal Points had been established for in 60 countries, comprising high-level representatives from 207 government institutions, 40 United Nations local offices, 62 multinational agencies, 249 microfinance networks, 39 central banks as well as key members of the private sector and civil society.
Hundreds of conferences and seminars are being held throughout the Year and more than 30 countries have developed formal public awareness campaigns to reach even the remotest region. Such awareness raising activities focus on introducing quality financial services to the poor and lower income people and are designed to reach a wide-ranging audience. Many governments realizing the benefits of microfinance have initiated innovative ideas at promoting the Year.
Worldwide countries are engaging in activities that include researching their microfinance sectors, hosting symposiums and training programs, and participating in the Global Microentrepreneurship Awards Programme.
Global Microentrepreneurship Awards Programme
More than 30 countries are participating in the second annual Global Microentrepreneurship Awards Programme, which highlights the achievements of low-income entrepreneurs. The programme brings together thousands of microfinance clients, students, private and public sector professionals, celebrities, senior government officials and UN agency staff.
Microcredit associations and microfinance institutions located in the GMA participating countries are now nominating their microentrepreneur clients for the awards. Criteria for the awards include, but are not limited to, innovation, social impact of the microentrepreneur, use of technology, quality of life improvement and creation of new employment opportunities. The winning contestants will be invited to ring the opening bells at over 30 stock exchanges, sending a strong signal to the world that building inclusive financial sectors can play an important role in poverty alleviation.
The GMA programme began in 2004 and led to the GMA Student Alliance, which is a formal collaboration between Citigroup, the United Nations, and student groups from universities across the globe.
The Blue Book Project
Initiated by the Year, and led by the United Nations Capital Development Fund and the Office of Financing for Development of the United Nations Department of Economic and Social Affairs, the Blue Book on Building Inclusive Financial Sectors used an international dialogue among a wide variety of financial sector experts to address the question of "why so many bankable people are unbanked."
Consultations were organized in Jordan, Mali, the Philippines, and Chile. Additional financial stakeholders' feedback were provided through an e-conference and an online survey. These consultations culminated at a Global Meeting in May, hosted by the International Labour Organization in Geneva and chaired by UN Under-Secretary José-Antonio Ocampo, where over a hundred and thirty experts in finance gathered in roundtable discussions to address the challenges of building inclusive financial sectors.
The basis of these consultations was to identify new perspectives on the most pressing issues and promising avenues for concrete change fostering access to financial products and services to the millions currently unbanked and contributed to the preparation to the publication the "Blue Book on Building Inclusive Financial Sectors for Development". The Blue Book aims to be a compelling analysis, identifying the constraints in the development and effective functioning of financial institutions and markets serving the wide-ranging needs of underserved households and businesses and lays out the avenues of opportunity to address these constraints.
While including the views and visions on the financial sector stakeholders and experts, the Blue Book's main purpose is to facilitate the processes fostering the development of inclusive financial systems; to serve that objective the Blue Book will include strategic options and policy choices. Supported by a multilateral agency steering committee composed of the UNCDF, UNDESA, the World Bank, the IMF, ILO and IFAD as well as through the support from other financial sector experts. An executive summary of the Blue Book will be presented at the " International Forum to Build Inclusive Financial Sectors" on November 7, 2005.
The Data Project
Although there is a broad consensus that microfinance is widely and increasingly used, there is little hard data about who provides it, in what form it is provided, who receives it and at what cost. In the fall of 2004, the Year, under the leadership of Stanley Fischer, Governor of the Bank of Israel, brought a small group of expert statisticians and researchers from the Bretton Woods Institutions and the United Nations together with governments and the private sector to address current data gaps, anticipate future needs and build agreement on the best way to move forward. As a result of this pioneering process, a joint working group with participants from the World Bank, the UK's Department for International Development (DFID) and FinMark Trust has moved forward, to develop indicators on the quality of financial access. The Central Bank of West African States (BCEAO) is also working on this issue.
A note describing the eight core indicators developed by the working group will be launched at the World Bank/IMF Annual Meetings this September. Proposals for additional indicators based on household surveys, and for standardized questionnaires are under currently under discussion in the joint working group on household indicators. In addition, the latest rounds of the World Bank's Investment Climate enterprise surveys conducted in almost 60 countries have also sought to explore questions of financial sector access by the surveyed companies, and the World Bank has accelerated its collection and publication of relevant data, and research based on such data from 99 countries.
"Made by Microentrepreneur" Products
A collection of 25 items including products made by microentrepreneurs, labeled with the logo of the Year, and books related to microfinance, convey to the public the importance of microentrepreneurs and microfinance. These are sold through an "online boutique" at www.shopmicro.org. The chosen products represent various world regions, male and female entrepreneurs, young and older craftspeople, various media as well as different market segments. The story of the artisan will be told on the website to illustrate the link to microfinance. National Committees and partner organizations are also invited to market and sell these products.
The online store currently has products from Macedonia, Colombia, Rwanda and Bangladesh. The store seeks involvement from microfinance institutional leaders, corporate partners and celebrities who will promote the products.
Newsletter
Microfinance Matters is a monthly web publication from the United Nations Capital Development Fund that was started by the Secretariat in January 2004. The newsletter now reaches over 6,500 direct subscribers and expects to have a circulation of more than 10,000 by the end of 2005. In addition to our subscription list, the newsletter is also distributed through various microfinance outlets, reaching an estimated additional readership of well over 50,000 people worldwide. Microfinance Matters takes advantage of the Year to promote innovative partnerships, raise public awareness, and share effective practices and expertise on building inclusive financial sectors. By inviting reader opinions, the newsletter is developing into a platform for discussion and debate. Contributors range from Central Bank Governors to Ambassadors to microfinance clients.
Film Projects and Public Service Announcements
Celebrities are lending their support to the year by recording public service announcements for worldwide distribution. American actor Michael Douglas filmed PSAs in August, joining international performers Aishwarya Rai, Anggun, Souad Maasi, and Karina. Brazilian musician and Minister of Culture Gilberto Gil has agreed to follow suit. Anggun's PSAs aired at the Pavarotti and Friends Concert in Johannesburg, South Africa on April 2 to an audience of 20,000. The PSAs were produced by Citigroup and are available in English, French, Spanish and Indonesian. Citigroup has agreed to distribute the PSAs internationally with its advertising package. The PSAs are distributed through the Year website, microfinance providers, and National Committees throughout the world. Plans are underway for an additional promotion campaign through posters, postcards and decals and to secure additional mainstream celebrities to promote the objectives of the Year.
The film short: "Microfinance: In Their Own Voices," a collection of client stories produced by Sterling Van Wagenen for the International Year of Microcredit, has been distributed to UN Information Centers and target broadcasters. The film is in demand from many parties, including National Committees, conference organizers, universities and others to promote microfinance messages. In addition, the Secretariat has offered input into a number of documentary film and television productions on microfinance. Films on microfinance produced for the Year will be made available on the Year website.
Patrons Group
The Emissary and Spokespersons Groups raise awareness of the objectives of the Year by participating in various events. Brazilian Minister of Culture Gilberto Gil has now joined the Year as a Patron and Emissary, joining in the efforts of several other dignitaries and royalty to promote microfinance.
Queen Rania of Jordan traveled to Washington D.C. to participate in a forum on microfinance in the Middle East. Princess Mathilde of Belgium has participated in an array of activities including visits to microfinance clients in China, Mali, and India and speaking engagements at universities in Europe, Asia and the United States. Princess Maxima of the Netherlands visited entrepreneurs, MFIs and government and Central Bank officials in Uganda and Kenya. Anggun has engaged in promotional trips to Indonesia, performed in benefit concerts, and has promoted the logo of the Year on her most recent album.
Year of Microcredit Website
The official website of the Year (www.yearofmicrocredit.org) provides extensive information about the Year, its objectives and activities, National Committee contact information and a calendar of national, regional and international events. The site serves newcomers to microfinance, industry practitioners, UN country teams and agencies, and donors. Organizations may link to the website (guidelines on how to do this are available on the site). The site also includes multiple languages to support our international audiences. Key areas include an events calendar, media resources, an interactive microfinance education area, an experts forum, international contact information for all Year country teams, and information about key sponsors and patrons group.
Special Events
Dignitaries, celebrities, high-level government officials, corporate CEOS and microfinance clients will gather at the United Nations headquarters in New York this fall for an historic microfinance event. "The International Forum to Build Inclusive Financial Sectors" will be held November 7- 9 and will unite diverse members of the microfinance community to celebrate the successes of the International Year of Microcredit 2005. More than 500 representatives from over 100 countries will gather to debate how to dramatically increase the availability of financial services for poor and low-income people. The goal of the Forum is to adopt an action plan for building inclusive financial sectors, bringing the world one step closer to achieving the Millennium Development Goals of poverty eradication.
The event includes a gala dinner celebration of the worldwide winners of the 2005 Global Microentrepreneurship Awards. Corporate sponsorships are available for the gala dinner.
The Forum will conclude with a seminar on regulation and supervision to be held on November 9. Discussions will focus on how to balance supervision and regulation with innovation and flexibility in order to promote the growth of microfinance. The event is hosted by the Federal Reserve Bank of New York, and co-sponsored by the New York State Banking Department and UNCDF.
Information on hundreds of other scheduled microfinance meetings, conferences, activities and events around the world are found on the official Year website (www.yearofmicrocredit.org).
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